The pictures and stories have changed a bit for both my NZD/CAD and CAD/JPY trades, so I’ve decided to adjust to lock in forex profits and free up capital.
Original Trade Idea: Technical Forex Short Opportunity on CAD/JPY?
Caught a little bit of luck with this trade thanks to the Bank of Canada surprising the markets with a rate cut on Wednesday. This surprise was no doubt the reason we saw the Loonie crushed, propelling CAD/JPY in favor of my trade to put me up around 100 pips at the momentum.
I’m not going to let this winner turn into a loser so I’ve already moved my stop to breakeven (96.75). And because I started with a small position, and because pressure may remain on the Loonie for now (weak oil and rate cut reaction), I’m looking to hold on and add to this position to maximize my profit. My next step is to see if the most recent swing low (95.56) is broken and if that break holds. If it does, I’ll likely look to add to my position to increase my max gain and trail my stop to maintain limited risk.
Original Trade Idea: Forex Trade Idea: NZD/CAD Short
Lots going on for NZD/CAD in fundamental terms for both sides of the market thanks not only to the previously mentioned surprise BOC rate cut, but also weak data (CPI and dairy prices data) from New Zealand putting pressure on the Kiwi in recent trading sessions.
With negative sentiment putting pressure on both the Kiwi and Loonie, I think it’s likely this pair will stay in a ranging pattern in the short term. So, I decided to close the full position down manually at .8460 to take a small profit and look for opportunities elsewhere:
1st half position: +40 pips
2nd half position: +140 pips
Total: +90 pips avg./ +0.39% gain
Long-term, this pair is still in a bearish trend, but with that small negative carry, I’d rather put my money to work somewhere else until there is another catalyst to bring directional volatility back to that market.